Abu Dhabi fund reportedly interested in buying DB Schenker
Abu Dhabi sovereign wealth fund ADQ is reportedly interested in the acquisition of DB Schenker. This brings in a new candidate for the acquisition of the logistics subsidiary of Deutsche Bahn (DB).
ADQ’s interest was recently highlighted by German media Handelsblatt. Officially, the bidding process surrounding DB Schenker has yet to begin, but the names of several potential buyers of the logistics giant have been circulating in the German press for some time. Analysts expect the sale to turn into a duel between Danish DSV and German DHL Group. Shipping companies Maersk and MSC and Dubai-based terminal operator DP World are also said to be in the race to make a bid, according to German media.
The sale of DB Schenker
Within the German government, a discussion on DB Schenker’s buyer criteria is still ongoing, as Handelsblatt mentioned. The newspaper writes that there are concerns about the consequences of a sale to the highest bidder because DB Schenker is important for the country’s transport chains. A sale could therefore only be an issue after a “thorough investigation”. DB’s supervisory board formally put the freight forwarding subsidiary up for sale in September this year.
The rail company thus wants to reduce its debts and free up money for modernisation of rail transport. Analysts expect that Schenker could be valued at between 10 and 20 billion euros upon sale. The sale of DB Schenker has been the subject of fierce political debate in Germany in recent years. The forwarder is responsible for most of DB’s operating profit, while several other divisions, including freight subsidiary DB Cargo, are making significant losses.
ADQ
ADQ is one of three major sovereign wealth funds in the emirate of Abu Dhabi. The fund also owns Abu Dhabi Ports Group, which owns a number of terminals and other port infrastructure in the United Arab Emirates, among other things. Furthermore, ADQ recently put over 182 million euros into the acquisition of offshore vessels.
This article was originally published by our sister publication NT.nl
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